The Financial Services and Markets Act 2000 (Exemptions from Financial Promotion General Requirement) Regulations 2023

The new Financial Services and Markets Act 2000 (Exemptions from Financial Promotion General Requirement) Regulations 2023 regarding the approval of financial promotions. Specifically, the regulations supplement the new Financial Services and Markets Act 2023 (FSMA 2023) which requires authorized persons to first get permission from the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) when approving financial promotions of unauthorized firms. The objective of this provision was / is to enhance the quality of financial promotions and provide the regulators with greater oversight. The ultimate goal is to ensure that consumers receive clear and accurate information in financial promotions to make informed decisions based on their individual circumstances.
The regulations now provide for exemptions from this permission requirements under certain circumstances, namely where
– the communication is prepared by an authorized person and subsequently distributed by an unauthorized person;
– both parties are members of the same group; and
– the unauthorized person is an appointed representative (AR) of the authorized firm which is responsible for the regulated activities to which the promotion applies.
In the end, the regulations thereby recognize the expertise of authorized firms in approving promotions for their own products and services, acknowledge the interconnected nature of intra-group businesses, and respect contractual relationships between principals and ARs.